More details today on something we told you about yesterday morning. East Kansas Agri-Energy in Garnett yesterday confirmed a report they planned to temporarily suspend production operations beginning October 1st. In a prepared statement, company officials said the prolonged drought conditions are having a negative impact on availability of corn and rising feedstock prices. Additionally, the demand for gasoline is down resulting in surplus ethanol stocks. The plant has been running at a 20-percent reduction in capacity since April, due to the same factors.
Board Chair Bill Pracht said, "We have studied the situation extensively and with the challenging economic conditions the Board of Directors has determined that it is in the best interest of the company and its shareholders to halt production at this time. We will monitor the situation with the hope to resume production of the facility as soon as market conditions allow".
In the release, the company does not indicate how many of the 35 employees will be impacted, saying only that a portion of the staff will experience the impact.
Board Chair Bill Pracht said, "We have studied the situation extensively and with the challenging economic conditions the Board of Directors has determined that it is in the best interest of the company and its shareholders to halt production at this time. We will monitor the situation with the hope to resume production of the facility as soon as market conditions allow".
In the release, the company does not indicate how many of the 35 employees will be impacted, saying only that a portion of the staff will experience the impact.
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